Purchase Order Financing

Fulfill your orders and pay your suppliers without disrupting your cash flow!

Merchant Cash Advance at a Glance

What to Expect

Factoring Lines

$50M to $10M+

FICO Score

No Requirements

Funding Turnaround

As little as 4 days

Available through

PCG & Our Finanacing Network

Purchase Order Financing 101

What is Purchase Order Financing

When businesses receive large customer orders but don’t have the cash to pay suppliers, Purchase Order Financing steps in to cover the costs. A lender finances the order by paying the suppliers directly, allowing the business to fulfill the order without using its own working capital. Once the customer makes payment, the business repays the lender, typically including a fee or interest. This type of financing enables businesses to handle larger orders, maintain smooth cash flow, and grow without being limited by cash flow constraints, especially during peak demand or periods of rapid expansion.

How to apply for Purchase Order Financing

Submit your customer purchase orders and supplier details along with recent financial records. Pennington will review your application, and if approved, they will pay your suppliers directly. Once your customer pays, you’ll repay Pennington, including any fees.

Benefits of Purchase Order Financing with Pennington

Immediate Cash Flow for Orders

Unlock the capital you need to fulfill large purchase orders by securing financing against your unpaid invoices or purchase orders, ensuring you can deliver on time.

Grow Your Business Without Delays

Use financing to purchase raw materials, inventory, or supplies needed to complete customer orders, helping you grow without waiting for customer payments.

No Debt Incurred

Unlike traditional loans, purchase order and invoice financing provides non-debt funding, giving you access to working capital without taking on additional liabilities.

Flexible Financing

Borrow funds based on the value of your invoices or purchase orders, allowing you to scale your financing up or down as your needs change.

Faster Payment Turnaround

Get quick access to funds, allowing you to process and ship orders faster while maintaining a steady cash flow.

Mitigate Risk in Large Orders

Purchase order financing can help you take on larger contracts or orders from customers without worrying about your ability to fund the purchase upfront.

No Collateral Required

Your purchase orders or invoices serve as the collateral, so you don’t need to risk other assets to secure financing.

Strengthen Supplier Relationships

With fast access to funds, you can pay your suppliers promptly, which can improve supplier relationships and help you negotiate better terms.

Qualifying for a Pennington Purchase Order Financing

Invoice and Purchase Order Financing helps businesses meet large orders, maintain liquidity, and accelerate growth without the burden of traditional financing. Get the funding you need to keep your business moving forward today!

Time in Business

2+ Years

Annual Revenue

$0K

Credit Score

0+

Basic Criteria for Purchase Order Financing Eligibility

 With the financial flexibility provided by purchase order financing, you can focus on growing your business, meeting customer demand, and increasing sales without the strain of cash flow challenges.

These requirements help financing companies evaluate your eligibility and determine the terms of the financing arrangement

  • Operating as a B2B (business to business) or B2G (business to government) entity.

  • Offering physical goods.

  • Having suppliers with solid business credit.

  • Ensuring your customers have good business credit, trade, and payment history.

  • Maintaining a minimum profit margin of 10 percent on orders.

Ready to Get Started?

Connect with a Pennington Business Financing Specialist to find out more

Discover Additional Financing Opportunities

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